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Mulia Sawit

SUBJECT

On 31 October 2018, Mighty Earth released the Rapid Response Report 9. The reports states that Apical was among the traders sourcing from Mulia Sawit Group (MSAL) whose subsidiary, PT Persada Era Agro Kencana (PT PEAK) is implicated in the clearance of 129 ha of peat forest between 27 August 2018 to 25 September 2018. According to the report, MSAL supplied to Apical from other mills but not directly from PT PEAK.

On 29 November 2018, Mighty Earth released a Rapid Response 10. The report alleged that between 27 August 2018 to 31 October 2018, 383 ha of peat were cleared.

PROGRESS

5 November 2018:

Apical demanded clarification from MSAL on the alleged peat forest clearance by PT PEAK.

8 November 2018:

MSAL responded claiming that they have acted in compliance with all governmental requirements with regards to the development of the area mentioned in the report.

Apical has decided to engage further with MSAL to investigate and gather more information on the allegation.

30 November 2018:

Apical met up with MSAL’s management to discuss the allegations and the next course of action required to address the issues.

6 December 2018:

Apical met with MSAL and provide recommendations to MSAL in order to comply with Apical sustainability policy. The recommendations are to stop land clearing, conduct the peat analysis study as well as to come out with NDPE policy and to build the 100% traceability to plantation.

Apical will monitor the progress.

On 19 December 2018, MSAL responded that they completed the study in 2011 and HCV assessment in 2016 with Fakultas Kehutanan IPB Bogor. Apical demanded MSAL to give clear commitment on the recommendations.

MSAL responded that they’re unable to commit such actions due to business reasons. However, MSAL willing to further engage with Apical in resolution of the matter.

Apical temporary put on hold sourcing from MSAL and to continue engage MSAL to resolve the issue.

At Apical Group, our commitment to sustainability stems right from the top. Apical’s President is supported by the Director of Sustainability and various business heads, to ensure sustainability is integrated within business and functional units, and embedded in the company’s core values and initiatives.

Sustainability topics are discussed at Board meetings held quarterly. We also have dedicated Sustainability teams based in Kuala Lumpur, Malaysia, and Pekanbaru, Dumai, Medan, Jakarta and Balikpapan in Indonesia. The Sustainability teams are tasked with implementing and monitoring our commitments through constructive stakeholder engagement and collaboration.

In addition, there is also a dedicated Social, Security and Licensing (SSL) department in each refinery we own, to handle social and licensing matters in compliance with national regulations as well as Apical Sustainability Policy. The team also oversees Corporate Social Responsibility (CSR) programmes to support better livelihoods in local communities.

Achieving sustainability goals requires more than just collaboration with our key stakeholders. Collaboration across industries and peer companies is also crucial and hence, we constantly look for and participate in new partnerships, relevant industry membership and certification schemes.

We participate in industry membership and certification schemes such as the Tropical Forest Alliance 2020, Roundtable on Sustainable Palm Oil (RSPO), including the RSPO P&C Review Taskforce and the RSPO Indonesia National Interpretation Working Group, the International Sustainability and Carbon Certification (ISCC), and the Indonesian Sustainable Palm Oil (ISPO)

Dato' Yeo How

APICAL GROUP PRESIDENT

Di Apical Group, komitmen kami terhadap keberlanjutan didukung penuh dimulai dari jajaran managemen teratas. Presiden Apical didukung oleh Direktur Keberlanjutan bersama seluruh kepala bisnis, memastikan keberlanjutan terintegrasi dalam unit bisnis dan fungsional, dan tertanam dalam nilai dan inisiatif inti perusahaan.

Topik keberlanjutan dibahas pada rapat dewan yang diadakan setiap tiga bulan. Kami juga memiliki tim keberlanjutan yang berdedikasi berbasis di Kuala Lumpur; Malaysia, dan Indonesia; Pekanbaru, Dumai, Medan, Jakarta dan Balikpapan. Tim Keberlanjutan ditugaskan untuk menerapkan dan memantau komitmen kami melalui keterlibatan dan kolaborasi pemangku kepentingan yang konstruktif.

Selain itu, kami didukung penuh oleh departemen Sosial, Keamanan, dan Perizinan (SSL) khusus di setiap unit bisnis yang kami miliki, untuk menangani masalah sosial dan perizinan sesuai dengan peraturan nasional serta kebijakan keberlanjutan Apical. Tim juga mengawasi program Tanggung Jawab Sosial Perusahaan (CSR) untuk mendukung penghidupan yang lebih baik di masyarakat setempat.

Mencapai tujuan keberlanjutan membutuhkan lebih dari sekadar kolaborasi dengan pemangku kepentingan utama kami. Kolaborasi lintas industri dan perusahaan sejenis juga penting dan karenanya, kami terus mencari dan berpartisipasi dalam kemitraan baru, keanggotaan industri yang relevan, dan skema sertifikasi.

Kami berpartisipasi dalam skema keanggotaan dan sertifikasi industri seperti Tropical Forest Alliance 2020, Roundtable on Sustainable Palm Oil (RSPO), termasuk P&C Review Taskforce RSPO dan National Interpretation Working Group RSPO Indonesia, International Sustainability and Carbon Certification (ISCC), dan Indonesian Sustainable Palm Oil (ISPO).

Dato' Yeo How

PRESIDEN APICAL GROUP